AEIS vs LRCX vs AMAT vs MKSI

For growth investors, Lam Research Corporation (LRCX) is the stronger pick with 23.

7% revenue growth year-over-year, versus 4. 4% for Applied Materials, Inc. (AMAT). Applied Materials, Inc. (AMAT) offers the better valuation at 47. 4x trailing P/E (37. 1x forward), making it the more compelling value choice. Analysts rate Advanced Energy Industries, Inc. (AEIS) a "Buy" — based on 24 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Applied Materials, Inc.

(AMAT) is the cheapest at 47. 4x versus Advanced Energy Industries, Inc. at 91. 7x. On forward P/E, MKS Inc. is actually cheaper at 30. 4x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Applied Materials, Inc. wins at 2. 16x versus Advanced Energy Industries, Inc. 's 21. 57x.

Over the past 5 years, Lam Research Corporation (LRCX) delivered a total return of +360.

5%, compared to +66. 5% for MKS Inc. (MKSI). Over 10 years, the gap is even starker: LRCX returned +38. 2% versus MKSI's +750. 6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Applied Materials, Inc.

(AMAT) is the lower-risk stock at 2. 14β versus MKS Inc. 's 2. 64β — meaning MKSI is approximately 23% more volatile than AMAT relative to the S&P 500. On balance sheet safety, Applied Materials, Inc. (AMAT) carries a lower debt/equity ratio of 32% versus 173% for MKS Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Lam Research Corporation (LRCX) is pulling ahead at 23.

7% versus 4. 4% for Applied Materials, Inc. (AMAT). On earnings-per-share growth, the picture is similar: Advanced Energy Industries, Inc. grew EPS 168. 5% year-over-year, compared to 0. 6% for Applied Materials, Inc.. Over a 3-year CAGR, MKSI leads at 3. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Lam Research Corporation (LRCX) is the more profitable company, earning 29.

1% net margin versus 7. 5% for MKS Inc. — meaning it keeps 29. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LRCX leads at 32. 0% versus 10. 9% for AEIS. At the gross margin level — before operating expenses — LRCX leads at 48. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Applied Materials, Inc. (AMAT) is the more undervalued stock at a PEG of 2. 16x versus Advanced Energy Industries, Inc. 's 21. 57x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, MKS Inc. (MKSI) trades at 30. 4x forward P/E versus 50. 7x for Lam Research Corporation — 20. 3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AMAT: 3. 9% to $426. 39.

All stocks in this comparison pay dividends.

Applied Materials, Inc. (AMAT) offers the highest yield at 0. 4%, versus 0. 1% for Advanced Energy Industries, Inc. (AEIS).

For long-horizon retirement investors, Advanced Energy Industries, Inc.

(AEIS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (+928. 9% 10Y return). Applied Materials, Inc. (AMAT) carries a higher beta of 2. 14 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AEIS: +928. 9%, AMAT: +20. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (AEIS (Industrials) and LRCX (Technology) and AMAT (Technology) and MKSI (Technology)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: AEIS is a mid-cap high-growth stock; LRCX is a large-cap high-growth stock; AMAT is a large-cap quality compounder stock; MKSI is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.